Importance Trends in key indicators of the banking sector demonstrate growth in assets and capital. The process is coupled with higher rates of growth in risks, thus reducing capital adequacy and current liquidity. Capital adequacy may decrease when banks accumulate dead or non-core assets on their balance sheets, and overdue loan debts grow faster than anticipated. The absolute amount of such assets has sustainable growth rate. Objectives The research focuses on the quantitative evaluation of banking processes in terms of the banking system's sustainability. The research also pursues articulating recommendations for bodies charged with corporate governance of banks in terms of analyzing the current position and preparing adequate positioning and management measures. Methods I explore the key indicators of the banking sector, their trends and correlations. To assess trends in assets, capital, credit risk and their effect on the financial sustainability of banks, I apply the benchmarking approach. Results As the research shows, major banks demonstrate the lowest compliance with the capital adequacy and liquidity requirements of the Central Bank. Growth in the sector's capitalization has not increased capital adequacy up to the safe level. Liquidity of the banking sector fell in December 2014 since banks had opted for long positions in April 2014. Conclusions and Relevance The banking sector consolidated assets and capital. However, it fails to increase its financial sustainability and faces an increase in credit and liquidity risks, amounts and portions of non-performing assets. The system risks of the banking sector grew in the period under study.
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